DeFi TVL Goes In The Red
This week, all significant chains saw their TVL dip by up to 7.26%. Fantom has lost the most DeFi TVL, although that won’t surprise anyone. Fantom’s decentralized finance ecosystem is under tremendous pressure due to Andre Cronje leaving and shutting off various protocols shortly. The network has a monthly decline of nearly 13%, confirming that things may not turn around soon.
The situation doesn’t look better for Ethereum, Terra, BNB Chain, Avalanche, Solana, and Polygon. All networks have a weekly decline between 3.24% and 6.29%. A steep setback in DeFi TVL, although these networks will likely rebound quicker than Fantom. That said, these steep declines are a point of concern. Thankfully, Ethereum, Terra, BNB Chain, and Polygon are still in the green for monthly growth. On the other hand, Avalanche and Solana have their work cut out.
It will be intriguing to see how things will evolve for these popular networks. The current dip is far from insurmountable, but the market momentum does not instill much confidence. Even with Bitcoin above $40,000, crypto holders have much fear and uncertainty. Changing that narrative will take a while unless something significant happens in the coming days.
Smaller Chains Rise Strongly
Although most people focus on the Ethereums and Terras of the DeFi world, smaller chains try to compete too. For example, conflux, BitTorrent, Algorand, Shiden, and Boba note a weekly DeFi TVL increase by over 24.4%. A remarkable trend that shows there is much competition in this industry. However, none of these networks have over 15 DeFi protocols, making them rather limited in appeal.
The 53.8% DeFi TVL increase by Conflux is impressive. However, the network represents under $19 million in Total Value Locked. It is much easier to note substantial growth when the overall TVL is low. The same applies to BitTorrent, which had a 32% weekly gain. Even so, that network’s DeFi TVL is still below $1,000. One must always put everything in the right perspective.
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